Article
Optimal Pricing in the Presence of Experience Effects
Economics
Document Type
Article
Publication Date
1-1-1982
Publisher
University of Chicago Press
Disciplines
Abstract
In this paper we analyze the problem of optimal intertemporal pricing for a monopolist when current (and past) output affect future cost and/or demand conditions through "experience" in production and/or in consumption. Learning by doing, the experience curve, contagion, habit formation, bandwagon, and snob effects are all examples of terminologies used to describe such situations. We call these "experience effects" for convenience and explore profit-maximizing pricing behavior when such effects exist
Citation Information
Clarke, Frank H., Masako N. Darrough, and John M. Heineke. "Optimal Pricing Policy in the Presence of Experience Effects." The Journal of Business 55.4 (1982): 517-30.
Copyright © 1982 University of Chicago Press. All rights reserved.
http://www.jstor.org/stable/2352991